Canada's Overnight Rate Hold Leaves Variable Mortgages Unchanged

The Bank of Canada held its overnight rate at 2.25% for the seventh consecutive time, leaving variable mortgage costs unchanged.

This decision comes against a backdrop of uneven economic signals, with unemployment at a two-year low of 6.4%, yet inflation returning toward the upper end of the central bank's target band.

Joel Fox, chief operating officer of Ownright, noted that the Bank has no hurry to act in either direction due to uncertainty around the economy, particularly with tariffs and inflation.

Higher oil prices are feeding inflation while tariff-related headwinds are weighing on growth, leaving the Bank little room to move confidently. Fox added that if inflation continues to ease while the economy remains weak, a rate cut could be seen later this year.